WeDo Business Finance Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 11844897

WeDo Business Finance Limited

Financial Statements

31 December 2024

WeDo Business Finance Limited

Financial Statements

Period from 1 August 2023 to 31 December 2024

Contents	Page

Strategic report	1

Directors' report	4

Independent auditor's report to the members	6

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the financial statements	16

WeDo Business Finance Limited

Strategic Report

Period from 1 August 2023 to 31 December 2024

The directors present their strategic report for the period ended 31 December 2024.

Principal activity

The principal activity of the group is the provision of a range of invoice, trade and asset finance services to small and medium sized businesses.

Fair review of the business

The current reporting period covers 17 months to 31 December 2024, compared with the prior period of 12 months. The group's income comprises of service charges, discount interest and other associated income from customers to whom the group provides finance products. Turnover generated of £18.15m in the 17 months to 31 December 2024 is in line with expectations and demonstrates another period of progress and success for the group. The gross profit percentage has increased to 54.6% (2023: 41.9%) and this reflects the group's commitment to obtaining competitive funding, together with a low risk of bad debt due to to robust credit risk management processes. Overheads continue to be well controlled and are of a level which will support the group's ambitious future growth plans.

Our mission and values

Our mission Our mission is to build lasting relationships with our employees, clients and stakeholders by consistently exceeding their expectations and putting their needs at the heart of everything we do. Our values - We support each other - we value strong collaboration within teams and across the group; WeDo is successful because of the quality of our relationships and communication with each other - We go above and beyond - we deliver exceptional service, find creative solutions to problems and build meaningful partnerships with our clients - We dream big - we aim high, strive for growth and set ambitious goals - We invest in our people - our people are at the centre of what makes WeDo special and successful; we invest in initiatives to ensure everyone feels supported and able to bring their full selves to work - We do the right thing - we act with integrity and are trustworthy; through our ESG initiatives we make a positive impact in our communities

Our mission and values

At WeDo, ESG continues to underpin our culture, operations, and community impact. Alongside our ongoing support of long-standing charity partners such as Variety, the Childrens Charity, we are proud to work with other community and charity initiatives including You Row Girl and Manchester Futsal Club, reflecting our commitment to both grassroots engagement and wider social causes. In the 17 months to 31 December 2024, we implemented a new intranet platform which embeds ESG into daily life at WeDo by encouraging employees to live our values, rewarding recognition through shout-outs and badges, and connecting colleagues with volunteering and fundraising opportunities. We also introduced an initiative where every member of our team receives a dedicated day of paid volunteering leave each year, and we further amplify their efforts by matching funds raised for charitable causes. Over the past year, our colleagues have taken part in fundraising events and supported campaigns such as Mission Christmas Cash for Kids, with many utilising their volunteering leave to contribute directly. During 2025 we initiated our first work shadowing programme following engagement at The Blue Coat School Careers Fair, strengthening our commitment to mentorship and future talent. Our move into Annie Kenney Mill in Oldham represents the next phase of our growth and is equally aligned to our ESG priorities, with the building's EPC A rating, solar energy, heat pump system, EV charging points, and LED lighting contributing to a more sustainable workplace.

Principal risks and uncertainties

The Board recognises that effective risk management is essential to protecting the group's financial stability, reputation, and ability to achieve its long-term objectives. The following risks and uncertainties have been identified as most relevant to the group's activities: Credit risk Nature of risk: the possibility of loss if clients are unable to repay advances or default on obligations due to insolvency, delayed payments or cashflow issues. Mitigation: the group has robust credit assessment and underwriting processes and continually monitors its clients' credit situation including in-depth reviews of client financial information and repayment performance. Adequate credit insurance is maintained where necessary. Liquidity and funding risk Nature of risk: the risk of the group being unable to meet our financial obligations or support client growth. Mitigation: the group regularly monitors its funding requirement and frequently undertakes stress testing of the cashflow projections and funding scenarios. Market and macroeconomic risk Nature of risk: adverse changes in interest rates, inflation, or economic downturns may reduce clients' growth ambitions impacting borrowing capacity, increase defaults or lower demand for finance. Mitigation: the group monitors macroeconomic indicators closely to proactively adjust strategies and maintains close relationships with clients and other stakeholders in the market. Regulatory and legal risk Nature of risk: failure to comply with applicable regulations resulting in penalties, reputational damage or restrictions on operations. Mitigation: the group have implemented a strong governance and compliance framework with appropriate Board oversight. The group provides regulatory training for staff and utilises the expertise of external legal and compliance advisors where appropriate. Operational and technology risk Nature of risk: the risk of loss from failures in internal systems, processes or IT infrastructure, including the risk of breaches in cybersecurity, leading to the disruption to business operations, particularly as a result of the significant volume of transactions with customers. Mitigation: the group have established robust, documented policies and procedures with an emphasis on segregation of duties to minimise the risk of fraud or error. The group have invested in robust IT systems and associated training to safeguard business continuity.

Key performance indicators

The group monitors a range of financial and non-financial key performance indicators all of which are analysed in regular operational and senior management meetings. The Board regularly reviews the following key performance indicators:

		31/12/2024	31/07/2023
	£	£	£
Revenue		18,155,650	12,730,789
Gross Profit		9,918,094	5,328,911
Profit/(loss) before taxation (2024 - profit, 2023 - loss)		429,472	6,017

The period to 31 July 2023 was a standard 12 months. The period to 31 December 2024 was 17 months.

This report was approved by the board of directors on 18 September 2025 and signed on behalf of the board by:

M Lindsay

Director

Registered office:

Suites 3 and 4

First Floor

Annie Kenney Mill

Hudson Street

Oldham

OL9 7FQ

WeDo Business Finance Limited

Directors' Report

Period from 1 August 2023 to 31 December 2024

The directors present their report and the financial statements of the group for the period ended 31 December 2024 .

Directors

The directors who served the company during the period were as follows:

M Lindsay
C Robinson

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Future developments

The board recognise that the wider macroeconomic environment remains uncertain, particularly in relation to interest rate movements, inflationary pressures, and the potential impact on our clients' trading performance.

Notwithstanding these uncertainties, the board remains confident that demand for alternative finance solutions will continue to provide opportunities for growth. The company's diversified product offering, risk management framework, and investment in operational infrastructure position it to respond appropriately to both opportunities and challenges.

The board will continue to adopt a responsible and disciplined approach to lending, while seeking opportunities to broaden the company's market presence and strengthen its funding base. The Board will also remain alert to regulatory developments and ensure that governance frameworks evolve in line with best practice.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 18 September 2025 and signed on behalf of the board by:

M Lindsay

Director

Registered office:

Suites 3 and 4

First Floor

Annie Kenney Mill

Hudson Street

Oldham

OL9 7FQ

WeDo Business Finance Limited

Independent Auditor's Report to the Members of WeDo Business Finance Limited

Period from 1 August 2023 to 31 December 2024

Opinion

We have audited the financial statements of WeDo Business Finance Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Audit response to risks identified As a result of performing the above, we identified income recognition as a key audit matters related to the potential risk of fraud. In order to mitigate the risk identified, enquiries were made of key management personnel as to the processes surrounding the recording of transactions (including bank transactions) and these were reviewed in detail. In addressing the risk of fraud through management override of controls, our procedures included reviewing and testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Due to the minimal number of transactions throughout the financial year it was clear that there had been no management override of controls and that each transaction had been correctly and properly recorded as appropriate. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The financial statements of the group for the period ended 31 July 2023 were not audited. Accordingly, no opinion is expressed on the comparative figures for that period.

Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Julie Curtis FCA

(Senior Statutory Auditor)

For and on behalf of

Allen, West and Foster Limited

Chartered accountants & statutory auditor

Omega Court

364-366 Cemetery Road

Sheffield

S11 8FT

18 September 2025

WeDo Business Finance Limited

Consolidated Statement of Comprehensive Income

Period from 1 August 2023 to 31 December 2024

		Period from
		1 Aug 23 to	Year to
		31 Dec 24	31 Jul 23
Note		£	£
Turnover	4	18,155,650	12,730,789

Cost of sales	8,237,556	7,401,878
	------------	------------
Gross profit	9,918,094	5,328,911

Administrative expenses		9,450,347	5,389,469
		-----------	-----------
Operating profit/(loss)	5	467,747	( 60,558)

Income from shares in group undertakings	9	870	–
Other interest receivable and similar income	10	1,369	60,860
Interest payable and similar expenses	11	40,514	6,319
		-----------	-----------
Profit/(loss) before taxation		429,472	( 6,017)

Tax on profit/(loss)	12	( 118)	4,375
		---------	-------
Profit/(loss) for the financial period and total comprehensive income		429,590	( 10,392)
		---------	-------

Profit for the financial period attributable to:

The owners of the parent company	344,886	265,502
Non-controlling interests	84,704	( 275,894)
	---------	---------
	429,590	( 10,392)
	---------	---------

All the activities of the group are from continuing operations.

WeDo Business Finance Limited

Consolidated Statement of Financial Position

31 December 2024

	31 Dec 24	31 Jul 23
Note	£	£

Fixed assets

Intangible assets	14	4,998,949	4,407,513
Tangible assets	15	1,415,881	381,671
		-----------	-----------
		6,414,830	4,789,184

Current assets

Debtors	17	43,528,606	46,288,210
Cash at bank and in hand		3,997,526	6,018,585
		------------	------------
		47,526,132	52,306,795

Creditors: amounts falling due within one year	18	4,014,434	9,133,760
		------------	------------
Net current assets		43,511,698	43,173,035
		------------	------------
Total assets less current liabilities		49,926,528	47,962,219

Creditors: amounts falling due after more than one year	19	49,631,891	48,032,346

Provisions	21	6,778	6,896
		------------	------------
Net assets/(liabilities)		287,859	( 77,023)
		------------	------------

Capital and reserves

Called up share capital	25	10	10
Profit and loss account		615,508	313,622
		---------	---------
Equity attributable to the owners of the parent company		615,518	313,632

Non-controlling interests	( 327,659)	( 390,655)
	---------	---------
	287,859	( 77,023)
	---------	---------

These financial statements were approved by the board of directors and authorised for issue on 18 September 2025 , and are signed on behalf of the board by:

M Lindsay

Director

Company registration number: 11844897

WeDo Business Finance Limited

Company Statement of Financial Position

31 December 2024

	31 Dec 24	31 Jul 23
Note	£	£

Fixed assets

Tangible assets	15	470,408	364,315
Investments	16	183	183
		---------	---------
		470,591	364,498

Current assets

Debtors	17	50,089,566	52,437,634
Cash at bank and in hand		2,508,007	2,899,868
		------------	------------
		52,597,573	55,337,502

Creditors: amounts falling due within one year	18	2,969,970	7,338,711
		------------	------------
Net current assets		49,627,603	47,998,791
		------------	------------
Total assets less current liabilities		50,098,194	48,363,289

Creditors: amounts falling due after more than one year	19	49,595,592	48,032,346

Provisions	21	4,653	4,653
		------------	------------
Net assets		497,949	326,290
		------------	------------

Capital and reserves

Called up share capital	25	10	10
Profit and loss account		497,939	326,280
		---------	---------
Shareholders funds		497,949	326,290
		---------	---------

The profit for the financial period of the parent company was £ 214,659 (2023: £ 41,687 ).

These financial statements were approved by the board of directors and authorised for issue on 18 September 2025 , and are signed on behalf of the board by:

M Lindsay

Director

Company registration number: 11844897

WeDo Business Finance Limited

Consolidated Statement of Changes in Equity

Period from 1 August 2023 to 31 December 2024

		Called up share capital	Profit and loss account	Equity attributable to the owners of the parent company	Non-controlling interests	Total
		£	£	£	£	£
At 1 August 2022		10	48,120	48,130	( 81,428)	( 33,298)

Profit for the period			265,502	265,502	( 275,894)	( 10,392)
		----	---------	---------	---------	-------
Total comprehensive income for the period		–	265,502	265,502	( 275,894)	( 10,392)

Dividends paid and payable	13	–	–	–	( 33,333)	( 33,333)
		----	---------	---------	---------	-------
Total investments by and distributions to owners		–	–	–	( 33,333)	( 33,333)

At 31 July 2023		10	313,622	313,632	( 390,655)	( 77,023)

Profit for the period			344,886	344,886	84,704	429,590
		----	---------	---------	---------	---------
Total comprehensive income for the period		–	344,886	344,886	84,704	429,590

Dividends paid and payable	13	–	( 43,000)	( 43,000)	( 21,708)	( 64,708)
		----	-------	-------	-------	-------
Total investments by and distributions to owners		–	( 43,000)	( 43,000)	( 21,708)	( 64,708)

		----	---------	---------	---------	---------
At 31 December 2024		10	615,508	615,518	( 327,659)	287,859
		----	---------	---------	---------	---------

WeDo Business Finance Limited

Company Statement of Changes in Equity

Period from 1 August 2023 to 31 December 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 August 2022		10	284,593	284,603

Profit for the period			41,687	41,687
		----	---------	---------
Total comprehensive income for the period		–	41,687	41,687

At 31 July 2023		10	326,280	326,290

Profit for the period			214,659	214,659
		----	---------	---------
Total comprehensive income for the period		–	214,659	214,659

Dividends paid and payable	13	–	( 43,000)	( 43,000)
		----	-------	-------
Total investments by and distributions to owners		–	( 43,000)	( 43,000)

		----	---------	---------
At 31 December 2024		10	497,939	497,949
		----	---------	---------

WeDo Business Finance Limited

Consolidated Statement of Cash Flows

Period from 1 August 2023 to 31 December 2024

	31 Dec 24	31 Jul 23
	£	£

Cash flows from operating activities

Profit/(loss) for the financial period	429,590	( 10,392)

Adjustments for:
Depreciation of tangible assets	391,634	65,598
Amortisation of intangible assets	119,842	101,528
Income from shares in group undertakings	( 870)	–
Other interest receivable and similar income	( 1,369)	( 60,860)
Interest payable and similar expenses	40,514	6,319
Loss on disposal of tangible assets	44,363	20,000
Tax on profit	( 118)	4,375

Changes in:
Trade and other debtors	2,759,604	( 4,841,248)
Trade and other creditors	( 4,353,391)	( 672,264)
	-----------	-----------
Cash generated from operations	( 570,201)	( 5,386,944)

Interest paid	( 40,514)	( 6,319)
Interest received	1,369	60,860
Tax received	–	2,521
	---------	-----------
Net cash used in operating activities	( 609,346)	( 5,329,882)
	---------	-----------

Cash flows from investing activities

Purchase of tangible assets	( 1,605,441)	( 358,716)
Proceeds from sale of tangible assets	135,234	–
Purchase of intangible assets	( 835,756)	( 3,624,954)
Dividends received	870	–
	-----------	-----------
Net cash used in investing activities	( 2,305,093)	( 3,983,670)
	-----------	-----------

Cash flows from financing activities

Proceeds from borrowings	957,097	12,196,048
Payments of finance lease liabilities	991	( 36,382)
Dividends paid	( 64,708)	( 33,333)
	-----------	------------
Net cash from financing activities	893,380	12,126,333
	-----------	------------

Net (decrease)/increase in cash and cash equivalents	( 2,021,059)	2,812,781
Cash and cash equivalents at beginning of period	6,018,585	3,205,804
	-----------	-----------
Cash and cash equivalents at end of period	3,997,526	6,018,585
	-----------	-----------

WeDo Business Finance Limited

Notes to the Financial Statements

Period from 1 August 2023 to 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Suites 3 and 4, First Floor, Annie Kenney Mill, Hudson Street, Oldham, OL9 7FQ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of WeDo Business Finance Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the period are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Non-controlling interests

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	10% straight line
Patents, trademarks and licences	-	10% straight line
Capitalised borrowing costs	-	Straight line basis over the term of each borrowing

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	20% - 100% straight line
Fixtures and fittings	-	20% straight line
Motor vehicles	-	20% straight line
Equipment	-	20% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Rendering of services	18,155,650	12,730,789
	------------	------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom and Australia.

5. Operating loss

Operating profit or loss is stated after charging/crediting:

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Amortisation of intangible assets	119,842	101,528
Depreciation of tangible assets	391,634	65,598
Loss on disposal of tangible assets	44,363	20,000
Impairment of trade debtors	(251,071)	(224,078)
Foreign exchange differences	( 35,165)	7,647
	---------	---------

6. Auditor's remuneration

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Fees payable for the audit of the financial statements	51,500	–
	-------	----

7. Staff costs

The average number of persons employed by the group during the period, including the directors, amounted to:

	31 Dec 24	31 Jul 23
	No.	No.
Production staff	29	22
Administrative staff	26	25
Management staff	16	14
	----	----
	71	61
	----	----

The aggregate payroll costs incurred during the period, relating to the above, were:

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Wages and salaries	4,403,280	2,521,718
Social security costs	438,254	260,154
Other pension costs	88,050	58,048
	-----------	-----------
	4,929,584	2,839,920
	-----------	-----------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Remuneration	337,750	249,000
Company contributions to defined contribution pension plans	3,742	2,641
	---------	---------
	341,492	251,641
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	31 Dec 24	31 Jul 23
	No.	No.
Defined contribution plans	2	2
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Aggregate remuneration	190,583	131,000
Company contributions to defined contribution pension plans	1,871	1,320
	---------	---------
	192,454	132,320
	---------	---------

9. Income from shares in group undertakings

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Dividends from group undertakings	870	–
	----	----

10. Other interest receivable and similar income

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Interest on cash and cash equivalents	1,369	60,860
	------	-------

11. Interest payable and similar expenses

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Interest on obligations under finance leases and hire purchase contracts	40,514	4,915
Other interest payable and similar charges	–	1,404
	-------	------
	40,514	6,319
	-------	------

12. Tax on profit

Major components of tax expense

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Foreign current tax income	–	( 2,521)

Deferred tax:

Origination and reversal of timing differences	( 118)	6,896
	----	------
Tax on profit	( 118)	4,375
	----	------

Reconciliation of tax (income)/expense

The tax assessed on the profit/(loss) on ordinary activities for the period is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).

	Period from
	1 Aug 23 to	Year to
	31 Dec 24	31 Jul 23
	£	£
Profit/(loss) on ordinary activities before taxation	429,472	( 6,017)
	---------	------
Profit/(loss) on ordinary activities by rate of tax	107,368	( 266,648)
Effect of expenses not deductible for tax purposes	189,021	380,339
Effect of capital allowances and depreciation	( 221,449)	( 40,058)
Utilisation of tax losses	( 75,058)	( 69,258)
	---------	---------
Tax on profit	( 118)	4,375
	---------	---------

13. Dividends

	31 Dec 24	31 Jul 23
	£	£
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period )	64,708	33,333
	-------	-------

14. Intangible assets

Group	Goodwill	Patents, trademarks and licences	Capitalised borrowing costs	Total
	£	£	£	£
Cost
At 1 August 2023	4,375,437	200,000	12,981	4,588,418
Additions	825,628	–	10,128	835,756
Other movements	( 124,478)	–	–	( 124,478)
	-----------	---------	-------	-----------
At 31 December 2024	5,076,587	200,000	23,109	5,299,696
	-----------	---------	-------	-----------
Amortisation
At 1 August 2023	132,936	40,000	7,969	180,905
Charge for the period	88,684	28,333	2,825	119,842
	-----------	---------	-------	-----------
At 31 December 2024	221,620	68,333	10,794	300,747
	-----------	---------	-------	-----------
Carrying amount
At 31 December 2024	4,854,967	131,667	12,315	4,998,949
	-----------	---------	-------	-----------
At 31 July 2023	4,242,501	160,000	5,012	4,407,513
	-----------	---------	-------	-----------

The company has no intangible assets.

15. Tangible assets

Group	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 August 2023	464,218	8,729	10,000	2,625	485,572
Additions	1,604,842	–	–	599	1,605,441
Disposals	( 201,939)	–	( 10,000)	–	( 211,939)
	-----------	------	-------	------	-----------
At 31 December 2024	1,867,121	8,729	–	3,224	1,879,074
	-----------	------	-------	------	-----------
Depreciation
At 1 August 2023	96,448	1,746	4,500	1,207	103,901
Charge for the period	385,294	2,473	2,833	1,034	391,634
Disposals	( 25,009)	–	( 7,333)	–	( 32,342)
	-----------	------	-------	------	-----------
At 31 December 2024	456,733	4,219	–	2,241	463,193
	-----------	------	-------	------	-----------
Carrying amount
At 31 December 2024	1,410,388	4,510	–	983	1,415,881
	-----------	------	-------	------	-----------
At 31 July 2023	367,770	6,983	5,500	1,418	381,671
	-----------	------	-------	------	-----------

Company	Plant and machinery
	£
Cost
At 1 August 2023	458,404
Additions	481,541
Disposals	( 201,939)
	---------
At 31 December 2024	738,006
	---------
Depreciation
At 1 August 2023	94,089
Charge for the period	198,518
Disposals	( 25,009)
	---------
At 31 December 2024	267,598
	---------
Carrying amount
At 31 December 2024	470,408
	---------
At 31 July 2023	364,315
	---------

16. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 August 2023 and 31 December 2024	183
	----
Impairment
At 1 August 2023 and 31 December 2024	–
	----

Carrying amount
At 1 August 2023 and 31 December 2024	183
	----
At 31 July 2023	183
	----

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
WeDo Accountancy Services Limited	Suites 3 and 4, First Floor	Ordinary	90
	Annie Kenney Mill
	Hudson Street
	Oldham
	OL9 7FQ
WeDo Asset Finance Limited		Ordinary	80
WeDo Invoice Finance Limited		Ordinary	100
WeDo HR Support Limited		Ordinary	85
WeDo Property Finance Limited		Ordinary	100
WeDo Trade Finance Limited		Ordinary	85
WeDo RPO Limited		Ordinary	100
WeDo Support Services Limited		Ordinary	100
Stax Capital Limited		Ordinary	70
WeDo Invoice Finance Pty		Ordinary	100
WeDo Business Services (Australia) Pty		Ordinary	100

Other significant holdings
WeDo Digital Technologies Limited	Ordinary	40

The companies listed above are those that the group and the parent company had an interest of 20% or more as at 31 December 2024.

17. Debtors

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Trade debtors	38,288,734	35,845,540	372,905	522,785
Amounts owed by group undertakings	–	–	44,607,231	40,514,256
Prepayments and accrued income	880,057	996,780	867,128	968,186
Other debtors	4,359,815	9,445,890	4,242,302	10,432,407
	------------	------------	------------	------------
	43,528,606	46,288,210	50,089,566	52,437,634
	------------	------------	------------	------------

18. Creditors: amounts falling due within one year

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Loans and borrowings	483,003	1,139,736	–	–
Trade creditors	214,627	427,946	392,114	234,471
Accruals and deferred income	1,445,213	7,184,166	1,452,600	6,984,061
Social security and other taxes	493,459	322,978	76,244	61,245
Obligations under finance leases and hire purchase contracts	58,602	58,934	58,602	58,934
Director loan accounts	15,608	–	9,610	–
Other creditors	1,303,922	–	980,800	–
	-----------	-----------	-----------	-----------
	4,014,434	9,133,760	2,969,970	7,338,711
	-----------	-----------	-----------	-----------

19. Creditors: amounts falling due after more than one year

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Loans and borrowings	49,500,471	47,902,249	49,464,172	47,902,249
Obligations under finance leases and hire purchase contracts	131,420	130,097	131,420	130,097
	------------	------------	------------	------------
	49,631,891	48,032,346	49,595,592	48,032,346
	------------	------------	------------	------------

Loans and borrowings are secured by a fixed and floating charge over all current and future assets of the group.

20. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Not later than 1 year	58,602	58,934	58,602	58,934
Later than 1 year and not later than 5 years	131,420	130,097	131,420	130,097
	---------	---------	---------	---------
	190,022	189,031	190,022	189,031
	---------	---------	---------	---------

21. Provisions

Group	Deferred tax (note 22)
	£
At 1 August 2023	6,896
Charge against provision	( 118)
	------
At 31 December 2024	6,778
	------

Company	Deferred tax (note 22)
	£
At 1 August 2023	4,653
	------
At 31 December 2024	4,653
	------

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Included in provisions (note 21)	6,778	6,896	4,653	4,653
	------	------	------	------

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Accelerated capital allowances	6,778	6,896	6,778	6,896
	------	------	------	------

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 88,050 (2023: £ 58,048 ).

24. Financial instruments

The carrying amount for each category of financial instrument is as follows:

Financial assets measured at fair value through profit or loss

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Financial assets measured at fair value through profit or loss	53,940,962	57,095,979	53,068,164	55,702,000
	------------	------------	------------	------------

Financial liabilities measured at fair value through profit or loss

	Group		Company
	31 Dec 24	31 Jul 23	31 Dec 24	31 Jul 23
	£	£	£	£
Financial liabilities measured at fair value through profit or loss	53,653,103	57,173,002	52,570,215	55,375,710
	------------	------------	------------	------------

25. Called up share capital

Issued, called up and fully paid

	31 Dec 24		31 Jul 23
	No.	£	No.	£
Ordinary shares of £ 1 each	10	10	10	10
	----	----	----	----

26. Analysis of changes in net debt

	At 1 Aug 2023	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	6,018,585	(2,021,059)	3,997,526
Debt due within one year	(1,198,670)	641,457	(557,213)
Debt due after one year	(48,032,346)	(1,599,545)	(49,631,891)
	------------	-----------	------------
	( 43,212,431)	( 2,979,147)	( 46,191,578)
	------------	-----------	------------

27. Related party transactions

Group

Within other debtors of the group and the parent company is an amount due from a related party, WeDo Business Investments Limited, of £3,691,632 (2023: £6,196,142).